McDonald's Corp: Impact of Reproductive Health Policies

December 9, 2022 As You Sow

WHEREAS: A patchwork of laws regulates access to abortion and broader reproductive rights. State legislatures have introduced more than 600 restrictive laws since 2011.[1] Twelve states now ban abortion. Other states have enacted legislation that protects these rights.[2]

McDonald’s Corporation (“McDonald’s”) has significant operations in states where reproductive restrictions have been severely limited. These employees now face challenges accessing reproductive healthcare, including abortion services, for themselves or their family members.

Employers, as well as employees, bear the cost of restricted access to reproductive health care. For example, women who cannot access abortion are three times more likely to leave the workforce than women who are able to access abortion and four times as likely to slip into poverty.[3] The Institute for Women’s Policy Research estimates that state-level abortion restrictions may annually keep more than 500,000 women aged 15 to 44 out of the workforce.

According to a 2022 survey commissioned by Lean In, strong majorities of women under 40, regardless of political affiliation, would prefer to work for a company that supports abortion access.[4] In addition, a 2022 Harris Poll found that 69 percent of employees aged 18-34 want more clarity and transparency about their organization’s policies and benefits for reproductive healthcare.[5]

Surveys have consistently shown that a majority of Americans want to keep the Roe v. Wade framework intact. In a 2021 survey of U.S. consumers, 64 percent said employers should ensure that employees have access to reproductive health care, and 42 percent would be more likely to buy from a brand that publicly supports reproductive health care.[6]

McDonald’s says it “will continually seek out every opportunity to emphasize that diversity, equity and inclusion” is “central” to its brand.[7] McDonald’s also has a public goal “to reach gender parity globally in leadership roles (Senior Director and above) by the end of 2030.”[8] State policies restricting reproductive rights may restrict McDonald’s ability to meet its diversity and inclusion goals, with negative consequences to performance, brand, and reputation.

RESOLVED: Shareholders request that McDonald’s Board of Directors issue a public report prior to December 31, 2023, omitting confidential information and at reasonable expense, describing any known and potential risks or costs to the company caused by enacted or proposed state policies severely restricting reproductive rights, and detailing any strategies beyond litigation and legal compliance that the company may deploy to minimize or mitigate these risks.

SUPPORTING STATEMENT: In its discretion, the board’s analysis would usefully include:

a discussion of any effects of these proposed or existing state policies on employee hiring, retention, and productivity;
company decisions regarding closure or expansion of operations in states proposing or enacting restrictive laws and strategies;
any public policy advocacy by the company or related political contributions policies that take into consideration these policies;
and any planned or existing human resources strategies or employee educational strategies in response to these proposed or existing state policies.

[1] https://www.nbcnews.com/news/us-news/what-u-s-abortion-access-looks-graphics-n1274859

[2] https://reproductiverights.org/maps/abortion-laws-by-state/

[3] https://www.ansirh.org/sites/default/files/publications/files/turnaway_study_brief_web.pdf

[4] https://www.forbes.com/sites/kimelsesser/2022/08/02/employees-want-to-work-for-companies-that-support-access-to-abortion-according-to-leaninorg-study/

[5] https://www.catalyst.org/research/roe-v-wade-abortion-workplace-survey/

[6] https://greenwaldresearch.com/wp-content/uploads/2021/09/Tara-Health-Foundation-2021-Consumer-Survey-on-Brands-Defending-Reproductive-Health.pdf

[7] https://corporate.mcdonalds.com/corpmcd/our-purpose-and-impact/jobs-inclusion-and-empowerment/diversity-and-inclusion.html

[8] Ibid

Resolution Details

Company: McDonald’s Corp

Lead Filer: Amalgamated Bank

Year: 2023